HUL spurts on 'upgrade'

Hindustan Unilever has been seeing some robust volumes on its counter for the past couple of days. Today too, there is good volume and the stock price is up over 3% at Rs.799.20, just a tad away from its intra day high of Rs.800. Its 52-week high is at Rs.828.75.

The stock is after FII, Deutsche Bank upgraded the stock to “buy” from a “hold”. It also raised the target price to Rs.900 from Rs.700. It has turned optimistic as it expects the company’s investment in distribution channels, low-unit packs and fall in raw material costs will help margins. Also, in the current global atmosphere of turmoil and uncertainty, it expects HUL to emerge as a ‘risk aversion’ stock. It expects Q3 to be weak yet, recommends that time as a good opportunity to buy.